This is a basic
course in economic theory in which the decision
making by economic agents ( households and firms ) as
well as their interaction is discussed. Emphasis is laid on analysing
the responses of the economic agents to changes in the policy environment.
Topics covered are the Theory of the firm: technology, production and input
requirements, returns to scale, cost curves, profit maximisation
in a competitive market, Supply and factor demand functions; the theory
of the consumer and alternative theories of demand; Market forms: pricing
under monopoly and competition, price discrimination and price control,
oligopoly and bilateral monopoly, input demand under monopoly, profit maximisation
under linear processes, and inter-temporal models of consumer behaviour.

This basic course in
macroeconomics provides a comprehensive overview of the evolution of macro
models according to different schools of thought. Topics-wise, after a
brief recapitulation of the Keynes-Classics debate, the course moves on
to Patinkin's neoclassical synthetic model, Friedman's monetarist school
and finally to the new classical models incorporating rational expectations.
The course also covers microeconomic foundations for macro models and non-market
clearing models of unemployment. The primary objective of this course is
to equip students with appropriate modelling tools for understanding the
functioning of the macroeconomy and the implications of various macro policies
under varying macro environments.

Economic Development
I (Compulsory Course for Semester I)Mode of evaluation:
Written ExaminationInstructor: Ashok Guha

Students are introduced
to closed economy models of growth and stagnation-the theories of
Ricardo , Solow , Nelson etc. The course then turns to Open-economy models
of international income inequality and mechanisms for international transmission
of growth, Development Policy-demand stimulation strategies, Compulsions
behind development policies, Characteristics of development propelled by
specific compulsions, Inherited institutions and their role in economic
development etc. Labour attachment and labour-credit linkages &
Crop-sharing are also covered.

This course aims to
equip students with the mathematical tools that they would require in the
course of their M.A. programme . Differential and Difference Equations,
Dynamic Optimisation, Real Analysis and Matrix Algebra form part of this
course.

This is the second part
of a two-course sequence in basic Microeconomics. The course introduces
students to the concept of risk and how to characterize an individual’s
aversion to or tolerance for risk. It then goes on to identify the conditions
under which the returns from one asset could be said to be
“more risky” than another. The course then turns to an analysis of
bilateral contracts and focuses on two important issues that shape the
structure of contracts: the problems of moral hazard and adverse selection.
It shows how a wide variety of economic problems, such as the determination
of financial structure of firms, regulation of public utilities, incentives
in privatisation, firms’ advertisement activities, agricultural contracts
- to name a few - can be understood in terms of these concepts.

The course introduces
students to the major developments in macroeconomics over the recent years,
namely the use of the overlapping generations and optimal growth
models. It deals with explanations for fluctuations in economies.
In this connection it deals with real business cycles and with various
theories of the labour market which have been developed to explain the
cyclical behaviour of employment and output. The course also
deals with growth theory.

This is a first year
compulsory course in trade theory which introduces students to all the
basic mathematical and diagrammatic techniques used . Then course traces
the evolution of the classical and neo-classical trade theories leading
up to the more recent theories based on market imperfections. The student
is also introduced to theoretical and empirical foundations of the principle
of tariff protection. In the context of the global economy and international
regimes like GATT and WTO, the student is introduced to the theoretical
basis of regional integration movements.

This is a compulsory
course on statistical methods and introduction to econometrics. The course
provides a comprehensive coverage of probability theory and distributions
and a good introduction to bivariate and multivariate, but single equation
econometric modelling.

The course starts with
the basic national accounting concept of the balance of payments.
It then introduces students to various ways of analyzing the balance of
payments, the elasticities approach, the absorption approach, the monetary
approach to the balance of payments, and the intertemporal approach.
The course then deals with the IMF’s approach to balance of payments adjustment
and evaluation of the structural adjustment programmes of the Fund and
the Bank. The course also deals with appropriate policies for achieving
external and internal balance under various exchange rate systems.

This course is an option
for those intending to specialise in econometrics. The topics covered include
principal components analysis, seemingly unrelated regression systems,
simultaneous equations systems, time series analysis and forecasting models.

This course deals with
the developments in trade theory after 1975. These include dynamic versions
of the neo-classical theory and models based on imperfection in international
trade. The course traces how these developments square the empirical results
and theoretical advancements particularly after 1975. The second part of
the course deals with the theoretical basis for tariff protection in the
context of a world where commodity markets are imperfect. Here the student
is introduced to the role of tariff as a strategic device. Finally, the
recent issues of international trade and environment protection and trade
in services are discussed.

This course deals with
the evolution of the international monetary, payments and trading systems.
Initially the students are acquainted with the workings of the international
payments arrangements beginning with the gold standard and moving on to
the sterling and the dollar standards. Thereafter the course deals with
the events leading to the Bretton Woods conference and the evolution and
the workings of the International Monetary Fund (IMF) and the World Bank
(WB). The final part of the course deals with the international trading
system according to the ethics of GATT with special emphasis on the Uruguay
Round and the establishment of the World Trade Organisation (WTO)
.

The course is divided
into three parts. In the first part, the students are given a broad background
on the role of TNCs in world trade and production. Here various models
are discussed to show why the treatment of TNCs is not possible in
the standard neo-classical models of trade. The basic issues are
why TNCs exists at all and the advantages which such firms have over local
firms. Second, the organisational pattern of TNCs is discussed in the light
of theoretical developments in the field of industrial organisation. The second part
deals with the interaction between market structure and Technical progress.
Game theoretic tools are used to focus on several topics of strategic interest
like technology licensing , transfer of technology and joint ventures. The third part
of this course traces out the issues relating to taxation of TNCs indicating
how the usual theories of corporate taxation are not applicable to TNCs.
The students are also introduced to some case studies of TNCs in India.

The course deals with
the problems associated with the exploitation of renewable and non-renewable
natural resources. The major focus of the course is on
the pricing of the resources and the optimal policies of resource extraction.
Other issues covered in the course are international trade and natural
resources, economic growth, sustainability and natural resources, forest
management problems and green accounting. The analytical tools consist
mainly of the application of the standard micro-economic principles
and the methods of dynamic optimization.

China in the World
Economy:(0ptional Course for Semester III)Mode of evaluation:
Presentation &Written ExaminationInstructor: Madhu Bhalla

This course provides
a comprehensive overview of the Chinese economy since 1949. It deals with
developments in Chinese Agriculture, Industry, Foreign Trade and the Service
sector. It lays emphasis on Chinese integration into the world economy
with special reference the three key institutions, IMF, World Bank and
GATT/WTO. Topics include Labour laws, Property rights, stock markets

This is an optional
course open only to students who have done the above two courses on econometric
theory. The course covers specific applied econometric models in the areas
of consumer behaviour, production functions and growth accounting, macroeconometrics,
applied international trade and time series models and forecasting of exchange
rates. The course equips the students to use econometric tools in various
fields of applied research.

The course introduces
students to basic balance sheet concepts. It then deals with evaluation
of bonds and shares, portfolio choice, and the decision of firms
to invest and the means of financing, namely the Miller-Modigliani theorem
and its ramifications. The course deals with risk management, the use of
derivatives and their pricing and analysis.

This course analyses
markets in Less Developed Economies in the presence of asymmetric information
as well as the application of endogenous growth theory, theories of income
distribution, savings, and trade to such economies. Students are also introduced
to the political economy of development as well as different methods of
project appraisal.

Corporate Finance is
concerned with issues that are relevant from the point of view of the corporate
manager – in particular, the Chief Finance Officer of a company.
This includes the following types of decisions:

(I) Investment decisions,
such as capital budgeting (which investment projects to undertake or how
to evaluate investment projects), including decisions regarding mergers,
acquisitions, and divestitures.(II) Financing decisions,
such as how to finance investment projects, when to go public, the pricing
of initial public offerings (IPOs), how to choose the mix between debt
and equity, between private and public debt, between short and long term
debt.(III) How to resolve
conflicts of interests between management and shareholders (e.g. the role
of the market for corporate control, the board of directors, of significant
outside block shareholders).(IV) Corporate restructurings,
such as the restructuring of debt claims of firms in bankruptcy.(V) Issues pertaining
to the scale and scope of the firm – for example, the debate about the
merits of a “diversified” versus a “focused” strategy.

These issues and questions
have assumed a particular relevance for India because, as part of the move
towards a liberalized economy, Indian companies have been allowed to engage
in financial and investment activities on a scale that has not been seen
before. Indian companies today access the public debt and equity markets
much more frequently than before, have freedom to choose the issue price
of their securities, and engage in takeover and divestiture activities.
The Securities and Exchange Bureau if India (SEBI) is extremely active
in formulating rules and regulations that are necessary for capital markets
to function efficiently. The course will focus on the theory of Corporate
Finance, and to the extent possible, will attempt to relate this theory
to the factual evidence that is available for India and to the developments
that are taking place in India under the auspices of the SEBI.

This course is aimed
at introducing to the students, the evolution of the world economy, the
reasons for the different growth trajectories of the different regions
as well as the recent trends in the world economy. It aims to explain why
different economies like Japan and Germany have different kinds of business
organisations, or banking practices and also covers the emergence of new
types of organisations e.g. `virtual firms’ etc.

This course aims to
familiarise the students with some of the tools being used at the frontiers
of economics research. This course is divided into two parts. The first
part deals with multi-sectoral models, including input-output models, models
that treat economic environment as uncertain and growth economics with
an emphasis on endogenous growth based on technologies generated at the
firm level, while the second part deals with game theory.

In the second part of
this course a formal introduction to the game theoretic tools, both cooperative
as well as non-cooperative, that has revolutionised economics in the last
two decades, is provided. These tools are then used to analyse several
problems in industrial organization like mergers and takeovers, location
choice, advertising, joint ventures etc.

This course is aimed
at introducing to the students the special problems an economist faces
when he tries to value or measure environmental goods. The student is introduced
to the Theory of Externalities and Market Failure, property rights and
the Coase Theorem, as well instruments for pollution abatement that compete/complement
existing markets. Country experiences with market-based instruments are
also taken up. Other topics that are covered are measurement of the demand
for environmental goods, contingent valuation, cost-benefit analysis in
environmental project evaluation, growth and environment, Trade and environment,
harmonisation of environmental issues, Harmonisation and the GATT/WTO agenda.

The list of courses
does not end here. For those interested in doing a full
course in Game Theory or Industrial Organisation Theory,
one take these courses which are offerred by the Centre for Economic
Studies and Planning, in the neighbouring School of Social Sciences.
These
courses are taught by Professor
Kunal Sengupta and/or Dr. Krishnendu
Ghosh Dastidar.